1. SURINAME: THE INSTITUTIONS THAT MATTER FOR DIVERSIFICATION Francisco G. Carneiro

2. SURINAME’S EXPORTS ARE HIGHLY CONCENTRATED ON PRIMARY GOODS Source: WBG staff calculation based on UNCTAD Stats - Pinies, Varma and Wacker (2015), Stylized Facts in the Caribbean. Primaries include SITC 0 to 4+68+667+971; Manufactures include SITC 5 to 8 less 667 and 68. Data for 2012 (2011 for service data in Barbados and Trinidad and Tobago).

3. IN THE CARIBBEAN, COMMODITY EXPORTERS TEND TO HAVE THE HIGHEST LEVELS OF DIVERSIFICATION Number of export lines shows the total number of goods and services exports in 2007. Services are Communications, Financial Services, Transport and Travel Services. Goods exports correspond to 4 digits classification of SITC Revision 2. Bar shows the group mean. Other LAC refers to Latin America excluding Caribbean countries. LAC7 refers to the seven largest economies of Latin America (Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela). Sources: WDI and WITS, Pinies, Varma and Wacker (2015), Stylized Facts in the Caribbean.

4. SURINAME REMAINS AN OUTLIER IN COMPARISON WITH OTHERS IN THE REGION The square root of the normalized Herfindahl Index for Exports of Goods and Services for 2007 is a measure of exports concentration. Services included are Communications, Financial Services, Transport and Travel Services. Goods exports correspond to 4 digits classification of SITC Revision 3. Black correspond to Caribbean countries; Gold to OECS countries; Green to Dominican Republic & Jamaica; Yellow to Trinidad & Tobago; Red to Other LAC; Sienna to Large LAC (Argentina, Brazil, Colombia & Mexico) and the orange crosses represent the rest of the countries. The blue line is the fitted line (linear). Sources: WDI and WITS, Pinies, Varma and Wacker (2015), Stylized Facts in the Caribbean.

5. Economic Prosperity & Diversification AssetsPolicy Levers Management of Risks ELEMENTS OF A SUCCESSFUL GROWTH MODEL

6. Natural CapitalPhysical CapitalHuman CapitalInstitutional Capital Assets

7. Volatility Reducing Productivity Enhancing Employment Creating POLICY LEVERS

8. INSTITUTIONS THAT MATTER Service Delivery Energy, water, land, health, education, public administration Business Environment Financial sector, competitiveness, sophistication of business strategy & operations, technological readiness Macroeconomic Management Volatility reducing, role of the state, sources of growth Mobility Migration Spatial Policy Social Contract Inclusive Growth Distributional Issues

9. CONCLUSION The institutions that matter are those that can help and not hinder public service delivery; the business environment; and macroeconomic management A sustainable growth model that is conducive to diversification requires strengthening of market and public institutions There are therefore plenty of opportunities to develop other product lines and diversifying Suriname is an outlier in the region in that it is a commodity exporter, but one with low levels of export diversification

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